Bill would boost aid to college students

If all goes according to plan, college students across the nation may soon get their most significant financial leg up since the GI Bill, lawmakers say.

The College Cost Reduction and Access Act, co-authored by U.S. Rep. George Miller, D-Martinez, would in-crease financial aid for higher education by about $20 billion over the next five years. Included in the bill are provisions to increase the amount of federal need-based grants and to make student loan repayment easier.

"The act is beneficial to a wide range of college students," said Solano Community College's dean of financial aid, Sal Alcala.

Alcala estimated that well over half - about 6,500 - of SCC's almost 10,000 students receive some form of financial aid. Of those, he said, about 1,700 receive Pell Grants, and more than 500 take out federally subsidized loans.

Under the proposed bill, the maximum annual Pell Grant amount would increase by more than $1,000 over the next five years, to reach a maximum grant amount of $5,400 per year by 2012.

The legislation offers several ways to minimize the burden of student loan repayment and to encourage students on service-oriented career tracks.

In addition to slashing interest rates on federally subsidized loans by 50 percent, the bill will ensure that borrowers don't have to use more than 15 percent of their discretionary income on loan payments.

Public servants - including police, firefighters, public defenders and nurses - may have their loans forgiven after ten years of service, while students pursuing careers as teachers of high-demand subjects may be eligible for up to $4,000 annually in tuition assistance.

The bill also contains a provision granting more that $510 million for minority-serving institutions over the next five years.

Backers of the legislation say the bill will pay for itself. The additional funding will come from a reduction of federal subsidies paid to private lenders.

The changes come on the heels of a scandal that rocked the private student loan industry earlier this year. CCC's Bonnel said he hoped that, rather than being a reaction to the unscrupulous practices of some private lenders, the new bill is a "return to social programs" that facilitate higher education regardless of income.

The bill was approved by both houses of Congress last Friday. President Bush has said he plans to sign off on the legislation.

In a statement, Miller called the bill a bipartisan effort to "strengthen the nation's middle class."